2009 Annual Report - CRH

12. Earnings per Ordinary Share
The computation of basic and diluted earnings per Ordinary Share is set out below:
84 CRH
2009 2008
€m €m
Numerator computations - basic and diluted earnings per Ordinary Share
Group profit for the financial year 598 1,262
Profit attributable to minority interest (6) (14)
Profit attributable to equity holders of the Company 592 1,248
Preference dividends - -
Profit attributable to ordinary equity holders of the Company 592 1,248
Amortisation of intangible assets (including impairments) 54 43
Profit attributable to ordinary equity holders of the Company excluding amortisation of intangible assets 646 1,291
Depreciation charge (including impairments) 794 781
Numerator for "cash" earnings per Ordinary Share (i) 1,440 2,072
Denominator computations Restated (iii)
Denominator for basic earnings per Ordinary Share
Weighted average number of Ordinary Shares (millions) outstanding for the year (ii) 670.8 593.9
Effect of dilutive potential Ordinary Shares (employee share options) (millions) (ii) and (iv) 2.7 3.3
Denominator for diluted earnings per Ordinary Share 673.5 597.2
Basic earnings per Ordinary Share
- including amortisation of intangible assets 88.3c 210.2c
- excluding amortisation of intangible assets 96.3c 217.4c
Diluted earnings per Ordinary Share
- including amortisation of intangible assets 87.9c 209.0c
- excluding amortisation of intangible assets 95.9c 216.2c
"Cash" earnings per Ordinary Share (i) 214.7c 348.9c
(i) “Cash” earnings per Ordinary Share, which is computed through adding amortisation of intangible assets, depreciation and asset impairments to profit attributable
to ordinary equity holders of the Company, is presented here for information as management believes it is a useful indicator of the Group’s ability to generate cash
from operations. Cash earnings per share is not a recognised measure under generally accepted accounting principles.
(ii) Basic and diluted earnings per Ordinary Share: The weighted average number of Ordinary Shares included in the computation of basic and diluted earnings per
Ordinary Share has been adjusted to exclude shares held by the Employee Benefit Trust and Ordinary Shares re-purchased and held by the Company (CRH plc)
as Treasury Shares given that these shares do not rank for dividend. The number of Ordinary Shares so held at the balance sheet date is detailed in note 30.
(iii) As set out in note 30 (iii) 152,087,952 new Ordinary/Income Shares were issued in March 2009 at €8.40 per share on the basis of two new Ordinary/Income
Shares for every seven existing Ordinary/Income Shares under the terms of a Rights Issue. The actual cum rights price on 3rd March 2009, the last day of
quotation cum rights, was €15.065, and the theoretical ex rights price for an Ordinary/Income Share was therefore €13.5839 per share. The comparative earnings
per share figures have been calculated by applying a factor of 1.1090 to the average number of shares in issue for 2008 in order to adjust for the bonus element
of the Rights Issue.
(iv) The issue of certain Ordinary Shares in respect of employee share options and Performance Share Plan awards are contingent upon the satisfaction of specified
performance conditions in addition to the passage of time. In accordance with IAS 33 Earnings per Share, these contingently issuable Ordinary Shares (totalling
15,851,556 at 31st December 2009 and 13,036,617 on a rights-adjusted basis at 31st December 2008) are excluded from the computation of diluted earnings
per Ordinary Share where the conditions governing exercisability have not been satisfied as at the end of the reporting period.